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Journal Entries for Merchandise Transactions on Sellers and Buyers BooksPerpetual System The following transactions occurred between the Decker Company and Mann Stores, Inc., during March:
Journal Entries for Merchandise Transactions on Sellers and Buyers BooksPerpetual System | ||||||
The following transactions occurred between the Decker Company and Mann Stores, Inc., during | ||||||
March: | ||||||
Mar. 8 | Decker sold | $14,000 | worth of merchandise with a cost of | |||
to Mann Stores with terms of 2/10, n/30 | ||||||
10 | Mann Stores paid freight charges on the shipment from Decker Company | $500 | ||||
12 | Mann Stores returned | $2,000 | of the merchandise at a | $1,600 | ||
17 | Decker received full payment for the net amount due from the March 8 sale. | |||||
20 | Mann Stores returned goods that had been billed originally at | $800 | cost of | |||
Decker issued a check for | $784 | |||||
Required | ||||||
Prepare the necessary journal entries for (a) the books of Decker Company and (b) the books of Mann | ||||||
Stores, Inc. Assume that both companies use the perpetual inventory system. | ||||||
a. | ||||||
DECKER COMPANY GENERAL JOURNAL | ||||||
Date | Description | Debit | Credit | |||
Mar. | 8 | Accounts Recievable | 14,000 | |||
Sales Revenue | 14,000 | |||||
Sold goods to Mann Stores | ||||||
terms 2/10, n/30 | ||||||
8 | Cost of Goods Sold | 96,000 | ||||
Inventory | 96,000 | |||||
Cost of goods sold to Mann Stores | ||||||
12 | Sales Returns + Allowances | 2,000 | ||||
Accounts Recieveable | 2,000 | |||||
Issued credit memo to Mann Stores for | ||||||
returned goods | ||||||
12 | Inventory | 1,600 | ||||
Cost of Goods Sold | 1,600 | |||||
Cost of goods returned by Mann Stores | ||||||
17 | Cash | 11,760 | ||||
Sales Discount | 240 | |||||
Accounts Receivable | 12,000 | |||||
Received payment in full from Mann Stores | ||||||
20 | ||||||
Paid Mann Stores for returned goods. | ||||||
20 | ||||||
Cost of goods returned by Mann Stores | ||||||
b. | ||||||
MANN STORES GENERAL JOURNAL | ||||||
Date | Description | Debit | Credit | |||
Mar. | 8 | |||||
Purchase goods from Decker Company | ||||||
terms 2/10, n/30 | ||||||
10 | ||||||
Paid freight charges on Decker shipment | ||||||
12 | ||||||
Received credit memo for goods returned to | ||||||
Decker Company | ||||||
17 | ||||||
Paid Decker Company in full | ||||||
20 | ||||||
Received check for goods returned to | ||||||
Decker Company | ||||||
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